wait and see mode. we are at about a two-week high. we are at the top end of this range. this tells you what the market was betting going into what it wanted to see as revealed in a press conference >> we are going to hear from president biden as well. that will do it for us ♪ happy wednesday. welcome to tech check. we are live here at cnbc headquarters today and tomorrow. it's a comeback day. lots of colleagues back in the office and a lot of software stocks coming back in a significant way in the early

trades nasdaq outperforming awaiting a key fed decision bulls in the china stock tech stocks like alibaba are surging. and a look at why one investor is getting bullish amid rising rates >> we kick off with the huge growth in tech stocks. snowmake is up as well zoom is up and datadog is also surging. john, it is a yo-yo, going back and forth. today is fed day a lot of these expectations are built in when you look on a one-day basis, there is still a lot of

rest >> these are dramatic bounces. i don't remember when we have seen bounces like this i think it has to make investors consider -- we get caught up in the positive headlines like things can only go up, up, up. and then the negative headlines, where is the value really? we just mentioned snowflake. there is still product doubling year over year is it snowing? we heard from brad he thinks it can triple a day like this makes you think maybe he's right >> we will talk some of the shared economy names dash helped subsidize some of their drivers with the high gas prices but devaluation. i don't think we are learning anything new today it's just relief >> you are learning you can't follow the crowd because the

crowd is going in a different direction. looking at some of the bigger names, apple is up 2%. that's nothing to sniff at still it's at around 2.5 trillion in valuation, well off the 3 trillion high it hit several weeks ago. >> another group we are going to talk about is the chinese stocks you don't see them often they are surging internet names we saw slammed earlier this week are getting a boost. look at these. all up over 20% each despite the pop all of these stocks remain in the red with some losing more than a fifth of its value since the start of the year you saw a few months ago some of these stocks are looking like a bargain. after that they continued to lose 100 billion in value.

is this a cycle? >> you said it, pindoor is up 25%, but still down 8.5% for the week it's tradeable, but how can you be up 45% on the date and still down on the week >> to that point, dd is worth 2.56 that shows you how far it has come down. in is a lot of ground to make up media is signaling a more business friendly environment saying regulators are working toward a plan for the chinese stocks joining us to break down the impact, the head of research hal, it's great to have you on

the program. we used to talk all of the time when i was based in asia you covered these markets so closely. you are on the ground. why should investors believe beijing at this time or should they >> good to be here today's meeting is very significant. this is the first time in a long time that the top government articulate its strategy for the market and especially for the tech sector going forward. specifically he said we should be focusing on pushing out market friendly policies from here on. so that's the reason we are seeing all of this sizable bounce even though now there is much uncertainty, and right now in the coming weeks there will be detailed policies coming out and remains to be seen

but for now, it was devastating. >> how the issues have piled up for investors in chinese stocks. there was the issue of regulation, but now there are questions about another covid lockdown what kind of support do you expect to see from beijing and will it be enough? >> i think the situation is still unraveling it's very difficult to see how they can stay with the current policy without much policy help. already we have seen the finance ministry said that the property tax trial is not going to be extended beyond the number of cities they identified earlier so basically that alleviates the pain on the property sector as well i think that is immediately being followed up from the meeting. i would expect that in the

coming weeks there will be more and more similar policies announcement as well >> hao, to what extent do geo politics play into china where maybe they don't want to be isolated in the global economy where at the same time they want to avoid ticpicking sides and getting caught up in western sanctions. >> chinese companies running into a roadblock with the sec is one example. it's very important for chinese tech companies to finance. if you cut those off and they come back to hong kong, even though they can be listed, the market size of hong kong is not entirely to that of the u.s. it is very important

i think the u.s. is somehow in a way using it as a bargaining chip to negotiate with china it remains to be seen. it's good to see peaceful development between ukraine and russia i think a lot more needs to be done >> given that then, if this is partly reflecting what's happening geopolitically, how stable is it because the geo political situation between russia and china is so moderate, might they change tone because of the geopolitical climate? >> i think it's a complicated situation to negotiate i think today he also mentioned the chinese csrc is working with the u.s. sec to sort out a plan

for companies. at the same time the chinese authority is working with the hong kong stock exchange to prepare for some i think there is preparation on both sides let's hope in negotiation with the u.s. sec goes well >> thanks for staying up late with us. >> two new notes are out today the first from burnstein wells fargo adding nvidia to its pick list. saying they expect auto opportunities to take off in the second half of the year. not to be left out, intel announcing a major investment in

europe, planning to announce $36 billion. production is slated for 2027 pending european approval and subsidies. this is pat's playbook to start there. that's a lot of capital investment at a time when for months -- he has been ceo for about a year and has been talking about the need not just to invest in found ary, but chis because you can't rely on stability. we have seen that play out over the lastyear if he's right, he will have a lot in the ground to accelerate. >> he came in with such a bold plan and there was skepticism where he could pull it off the jury is still out.

this is a multiyear process. does it feel like the market is buying into it more? in the journal piece, they are going to hit profitability, but shares are up nearly 3%. do you think he's gaining perhaps a little more confidence >> he was pretty confident to begin with i think the question is are investors gaining more confidence the stock is in the mid 40s which isn't where you would want to see it, but compared to other stocks, not so bad but are they able to meet the technical benchmarks on the forward leaning technology every time i talk to him he says we are at or above schedule. that's the only way they will do any good, if they are producing cutting-edge technology. >> it also feels like the market realizes there is no alternative to this. seeing what is playing out in

geopolitics shows the need for an american company to move in and looking to arm before the middle of next year. all but three of its ipos are under water. in this dynamic, we talk about stocks, but the big holders have been taken down. >> they have which makes the arm ipo more important. the business case for arm, a decade plus ago seemed okay, chips everywhere, smart everything, how is that going to work that is playing out. the question now is to what degree can arm get paid in that environment. what can they play to an

ecosystem. you look at the m-1 in apple lap tops -- >> yeah, and amazon is making arm-based chips as well. what kind of destruction happened during the years long of nvidia trying to acquire competition. as we talk about the importance of chips and what intel is doing, we will see if something can be made up >> papy pal has fallen 45% since the start of the year. we are just getting started.

alright, so...cordless headphones, you can watch movies through your phone? and y'all got electric cars? yeah. the future is crunk! (laughs) anything else you wanna know? is the hype too much? am i ready? i can't tell you everything. but if you want to make history, you gotta call your own shots. we going to the league!

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shift in growth. bank of america downgraded the stock. they say they are cautiously optimistic paypal can deliver. they cited the pinterest rumor as part of that. they have venmo with 60 million users. they have struggled to mon teti it, and now maybe it's too late. >> i use venmo do you >> yeah. >> i also use paypal but that pinterest boondoggled

them we see other companies doing it. why would you even talking that. >> a lot of people scratching their heads. yes, i use venmo i use zeall. a lot of people i need to transfer money to are on zelle and they had that time >> you are so young. zelle, it doesn't look like it, but you are getting older. >> you can buy your crypto on venmo. >> that's not what zelle is for. it's for middle-aged people like me the tech sector is down 20% on the year

our next guest highlights two baskets of stocks. we have wells fargo senior equity analyst i want to start with the risk back on scenario some of the names you have in there, one in particular is really interesting it's ticker team software product led growth why isn't that story, without some of the overhead costs, why isn't that good with what the environment has to do with valuations >> it is primarily valuations first. the majority of stocks are reflecting under ales -- fundamentals the macro has weighed more

heavily. we like books on developers. they have always given proper growth we have said leaders need to lead us off of this, but cluster of software. i think it makes sense to show the initial strength, but there is more upside given what is reflected in the shares today. >> looking at one of the more defensive names. we have tax season coming up in about a month. but things have diversified, not just on small business, but also now more consumer with credit karma and other things what do you view as being the defensive benefit in a stock like that? >> the defense benefits are u.s.

centric. international base, but a lot of global conflict, a lot of things taking place overseas have been u.s. centric there have been a lot of smart things with turbo tax live, the expert on platform we are seeing them leverage across quick $books as well. this is a different institute than we have seen previously, proving their ability to add inorganic opportunities. we think it expands to small business opportunity beyond just accounting >> we also talk about the dot com crash of 20 years ago. they said this fully fledged

dotcom crash 2.0 a lot of people point to amazon. yes, it continued to grow and grow, but cisco hasn't regained those levels it's still a great company but the valuation never -- it's been stuck. how do you discern between tech companies? >> it's a good observation why couldn't we stays lower for longer i will say a few things. software business models have changed a lot. if you look back, there weren't a lot of large gaps for companies at that point in time. we have more predictionability there is a continued secular shift. good news from a valuation backstock currently is we are looking for profitable growth,

management teams you can trust those are the sort of names we are highlighting throughout this report microsoft, salesforce, and other names. you are never going to get all of them right, but i think at these levels the risk-reward is more benefit favorably and stocks stronger than we have seen stocks are still at a premium given that you get into the underlying business fundamentals >> about a year ago we were talking a lot about ai, being the future of software to what degree should investors, even can investors look through at product results and commentary and see which companies are doing the best at developing ai technologies and making them relevant to

customers and to what degree is that an investable accelerant? >> it's a benefit theme. microsoft so seeing tremendous benefit from that. the data banks are getting larger there is continued appetite for ai being based in silicon valley, i spend a lot of time talking to those in technology, like you, yourself, john, and try to unpack who is attracting more attention in that regard there are customers, particularly in a tight labor market, anything that can open automation capabilities have ai attached to it >> love talking to people smarter. seems to happen all of the time. michael, thank you >> thanks very much.

>> door dashers are almost 70% off their high our next guest say now is the time to buy.

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welcome back to "tech check. the nasdaq outperforming the other indices by a wide margin even big tech is benefiting. all of the megacaps are in the green. and a look at instagram not for parents, but influencers >> here is what is happening at this hour. shares of starbucks holding on to stock gains after the ceo announced his retirement johnson told the board he wanted

to retire a year ago and hoped to do so when the pandemic eased. kohl's surging it is said that hudson's is considering a bid for the company. kohl's has had other takeover offers this year and home builders are saying that demand for homes remains strong and walmart wants to add another 1,000 jobs by the end of april they say it will work at campuses, supply chains. >> the fedex p expected to raise

rates today. in the tech sector there has been massive selling, but rebounding today we are joined with a playbook on how to navigate the volatility i don't see a binder in your hand do you have the playbook memorized? >> no binder yet a lot of this centers on the notion of volatility and what types of stocks could be more volatile than the market so if things turn south or north, these are the stocks that move more with them. if you look at the qqq trust, we know how far it has come off its highs here is. the ten-note treasury yield for the november highs was around 6% right now you are talking about 2.2% so as interest rates have gone up, the market has gone down especially for technology type stocks

that plays out if you dig one layer deeper into what is happening with the sectors overall. it has been the most growth oriented sectors that have taken the biggest hit. the three worst performing sectors are communication services, consumer discretionary. we know a lot of that trade is driven by tesla and technology sector overall these were the three worst performing sectors as for the most volatile stocks, we look at the nasdaq 100 and try to find which stocks have the highest beta, a measure of market volatility that makes them more volatile than the current market overall if you look at some of those names, among the eight that have betas of 1.5 or higher, workday is one of those names. as you can see it has been very volatile to the downside, much

more so thanned broader market another thing to look at is autodesk it is precipitously to the downside interest rates have come up, so it could be more volatile. the most volatile stock in the nasdaq 100 may be no surprise. tesla. it has outpaced the market both to the up and downside you can see tesla shares up pretty big today, more so than the broader market so it comes down to whether or not certain stocks will do more volatiley than the overall market if you want to look at that, go to my twitter feed i have posted them for you >> we will look at door dash, the delivery service saying all u.s. drivers will be eligible

for gas awards program as they announce new surcharges to help with gas costs joining us now is the general partner. mike, welcome. let's start with marketplace stocks it looks like they are the first to go in a portfolio they are still largely unprofitable why would investors want to nibble at these versus other vectors which may be stronger. >> i was ceo of a food delivery company where i competed with door dash and saw how they distribute i am an investor now the marketplace sector, we did a study where we looked and it was 60% down from all-time highs these are highly volatile

stocks, but there is a buying opportunity because these companies have long-term defensibility. three out of the top five mega cap stocks we talk about a lot, google, amazon, facebook, these have more defensibility. i think for long-term buyers this is a great buying opportunity. >> some of these mega caps we are in a different environment, uber, lyft. i know you like door dash better, but at the same time they are moving into other areas. they are expanding their door dash mod tell. -- model is this going to make them less profitable when investors are

looking for profitability. >> there is pressure to show stability. i think for this year it will be a bumpy ride if you buy now, buckle up. but if you wait for a year, waiting for the ukraine situation to stabilize, you might wait too long and miss the rally. it is hard to call the bottom, but now is a time to consider it if you have a view they may outperform there is a lot of benefit that these companies have a long-term vision and view around defensibility around the founder in a way that uber and others may not. >> you mentioned an interesting points stocks we don't think of as being marketplace, but being marketplace. yesterday we were talking about

adobe experience cloud it's similar to shopify in a lot of ways. what are the right metrics to measure marketplace health as investors try to look at who has the right kind of ecosystem dynamic who are helping partners feel like they can do well they are going to invest more in the platform and add to the marketability growth overall >> i have marketplace checklist.com and walked through this like door dash, you look how often are people using it, you look at supply and demand. you look at defensibility and how strong are the market effects and the switching costs. at door dash, people may download multiple door delivery

apps they have brought in sta teejt strategically things when amazon said we started as a direct consumer business but now the majority of their business is from the marketplace model, much like ebay's value proposition. but amazon outexecutes door dash may outexecute uber. >> we have seen tony and his team catch a large amount of the market share apply that checklist to air bnb. we have seen it be a pandemic winner and post pandemic winner. when you talk about stickiness,

air bnb doesn't have that. >> i think there is a lot of opportunity for air bnb. it's tradeoff. when you see frequency of use, you see lower average transaction value. air bnb has lower use. i started using air bnb as an early adopter. i may have only used it once or twice a year now i use it more frequently there is a digital lifestyle being unlocked we hear about the mega caps saying you have to come back to at the office. but more and more companies are saying you have a more flexible option maybe you never have to come back to the office air bnb, if they can create something like that, the air bnb pass lets you travel around. i find out that air bnb is much less competitive than food

delivery there is not a lot of direct substitutes. they are at a high eva multiple. i have to pioint that out. >> that is an expensive name thank you so much, mike. we will talk soon. new stats out from microsoft about remote work. those details later this hour. first, keep an eye on cybersecurity names this week. some analysts think now is the time to buy. new projects means new project managers. you need to hire.

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instagram rolls out new safety for parents it is focused on attracting younger users. julia has more of those details. >> instagram is launching those

parental controls today. it is the family control center. you can limit the amount of time they spend and get updates on which account they are following and which companies they are being followed by. this comes amid scrutiny of meta and it comes as it struggles with user retention. the daily average user base declined by a million. this move could give parents more peace of mind about their teens' activities on the meta platform this is just the latest push to give parents more control. last fall the whistleblower frances haugen said the company is aware of the impact it has on

teens. i spoke with her she said it is more important meta make changes so issues are not amplified in that dimension. you can catch our full interview on cnbc.com. >> is parental control what it has been focused on or the overall health of instagram for young peeples -- people. it's one thing so say you have been in this toxic environment long enough. it's another to clean up the environment. >> i think those two things are intricately connected. meta/facebook/instagram, they want to be sure parents have information about not only what their specific kids are doing on the platform, but these greater questions about how much time is appropriate, whether some of the

accounts they are following are not good for their mental health i think it's about parents being educated meta can say you are doing this with all of the knowledge about what can happen. there is a question should they tweet the algorithm to make sure that kids, teenagers are not seeing content that may not be good for their mental health >> julia, thank you. would it give you peace of mind to limit the time, not the environment? >> my kids are not on it at all, so i have peace of mind. >> how does it work without ipads? >> they don't particularly want them for now we will see. >> nasdaq and other risks.

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gut check.

starbucks is higher today on the leadership change. howard schultz coming back as interim ceo. johnson stepping down in april johnson was a top executive at microsoft. was brought in to expand starbucks digital footprint. did it work? kate >> take a look at the numbers. there were 13 awards members fast forward to this year. 25 million in the u.s., 45 million between china and the u.s. and in q 4 represented more than half the tender at operating stores they want to see how other merchants with connect their rewards to starbucks that's very digital, something you often see in the states.

they watched partnerships with paypal and others where you can reload your card with bitcoin and can convert to physical currencies you can't overlook the china growth. story. starbucks had 5500, it is the second home market for starbucks and a big growth opportunity in the future they've leaned into social gifting on wechat and alipay and taken advantage of that opportunity and came in to do exactly what they said, grow the digital business and they really have. >> on the tech side, jon, one of the most popular digital wallets before everyone was being looking at the space one other stock finding love amid the sell-off. bumble off 45% in the week although still negative for the month and that was the stock that started the year at $36 per share. me ah check" is back in just

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microsoft, the company behind office, linkedin, gethub out on the highlights and limits of remote work steve kovac is here next to me >> in real life, isn't that great? >> yes the details? >> they surveyed 30,000 people and they pulled data from linkedin and office 365 usage and what they found and the most

interesting set to me, rashths was over half of leaders of companies are basically saying come back to work. we want you in the office and employees are saying we want to do the hybrid thing or work from home forever and we have the managers stuck as the monkey in the middle here trying to figure out how to liaise between the two sides who want very different thing, but at the same time the tech companies are the first to have people coming back you're in san francisco right now. you're seeing it, right? >> let me tell you, there's a huge shift over the last day or so versus san francisco and the building hasn't cracked 600 people and here in new york and new jersey it feels false and it's not surprising that tech companies will handle it differently and airbnb has told us himself multiple times that people will want to travel and work i wonder if that's going to be the case >> if you listen to peloton we'll stay home and exercise in our bikes and airbnb we'll work

remotely forever in the temporary housing situations and probably get a nix of that and what we're seeing here the newsroom's crowded if you go downtown in manhattan you see people walking around again. it's really opening up, and i notice in this report like the tech companies when the pandemic first hit they were the first to say everyone go home they were ahead of the curve and now they're ahead of the curve of having people come back so it's really interesting. >> people have to come back to some degree. i'm seeing it just the quality of interaction that you get. we're all sitting here the quality of interaction that you get is different from what you can get remotely, when companies start to lose deals because their competitors are getting face time and they're getting screen time it will get real maybe we're not seeing it yet. flexibility is important >> the flip side, hard to get talent that want to be back in the office and there is another angle. thank you so much. great to have you on set >> think, all eyes are on the fed today as they announce their

plan for rates and the action begins at 1:00 p.m. eastern with an all-star lineup leading on the decision on the exchange coverage doesn't start at 2:00 p.m., gary cohn is on "closing bell" and ffjerey gundlach from double line. it is a big day ahead. don't go anywhere.

one more thing and that is mark zuckerberg talking about the important issues that south by southwest have a listen. >> makes great terry cloth clothes and i'm actually wearing it now it's super comfortable the right amount of terry, not too thick. too thick of a terry -- >> it sounds like an 80/20 blend. i got you. >> you have to get the right blend on the terry. >> an 80/20 blend, jon, or the ratio from meta this year. it's like a barbecue moment. what was the barbecue sauce? >> you have to make the connection that brand is kelly slater's brand. he's legend aary on a surf boar

and mark zuckerberg legendary. >> meanwhile, we're seeing just another huge day for the nasdaq up nearly 3% a lot of the growth names that we're talking about earlier this week coming back huge. we'll get to "the halftime report" starts right now >> dee, thank you. welcome to "the halftime report." i'm scott wapner a big day on the markets and the fed decision less than two hours from now of course, that's front and center for us. joining us for the hour, amy raskin, joe teranova, pete najarian, and co-founder of market rebellion.com the dow's better than 8% nasdaq having a big day today, that's nearly 3% gain. 2.75, 354, big eye on yields today. the ten-year note yield 216 and we'll keep our eyes peeled there. the conversation and all